Posted 1/18/2024, 8:57:53 PM
ECB Signals Patience on Rates As Euro Slides on Inflation Caution
- Euro falls as ECB cautions inflation will take time to reach 2% target, signals restrictive policy for now
- ECB concerned market expectations for rate cuts are premature and could derail disinflation
- Euro struggles to find footing technically; EUR/USD stuck between 50-day and 200-day averages
- Recent inflation drop encouraging but ECB unconvinced progress will persist
- Fed also pushes back on market hopes for faster pace of rate cuts, wants more evidence on inflation